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Date: May 19, 2026
To: Honorable Mayor and Members of the City Council
From: Aram Chaparyan, City Manager
By: Carlos Huizar, Management Associate | [email protected] Subject: City Manager – Determine California Environmental Quality Act (CEQA) Exemption, Adopt RESOLUTION of Intent to Consider Hydrogen Pipeline Franchise Application from Air Products and Chemicals, Inc., and Set Date for Public Hearing. Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager that City Council:
1. Determine that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines; and
2. Adopt a RESOLUTION of Intent to consider a hydrogen pipeline franchise application from Air Product and Chemicals, Inc. (Air Products) for the transportation of hydrogen along the public right of way within the City of Torrance, in 190th Street between Western Avenue and terminating 100 feet west of Van Ness Avenue; and
3. Set the date of June 9, 2026 for a public hearing at 6:30 PM during the regular Council meeting to be held in the LeRoy J. Jackson Council Chamber at 3031 Torrance Boulevard, Torrance, CA 90503.
FUNDING
None required.
EXECUTIVE SUMMARY
Air Products and Chemicals, Inc. currently operates a hydrogen pipeline under a 25-year franchise agreement (Ordinance No. 3499) which is set to expire on July 1, 2026. The applicant has requested a franchise renewal to continue operations. Approval of the attached Resolution of Intent is the first formal step in the renewal process, as required by the City Charter, and establishes the date for the mandatory public hearing.
1 City Council
May 19, 2026
DISCUSSION
Background
Section 1460 of the Torrance City Charter stipulates that the City may grant franchises by ordinance. In 2001, the City Council approved a 25-year franchise for Air Products to operate a 2,790 linear foot hydrogen pipeline along 190th Street. This agreement is nearing its conclusion and is set to expire on July 1, 2026.
Air Products has formally applied to renew its franchise rights within the existing geographic footprint for a twenty (20) year term. This pipeline serves as a critical component of local industrial infrastructure, enabling the continuous and safe transport of hydrogen.
The franchise renewal process requires a two-step legislative action. The adoption of the Resolution of Intent:
• Formally acknowledges the City Council’s consideration of the renewal application; • Schedules the required public hearing for June 9, 2026; and • Initiates the legal introduction of the proposed franchise ordinance.
Approval of the Resolution of Intent ensures the City remains on schedule to prevent a lapse in the franchise agreement. At the public hearing on June 9, 2026, the proposed ordinance will be presented for consideration, and Air Products representatives will be available to provide a technical presentation and address inquiries from the Council.
ENVIRONMENTAL FINDINGS
Staff has evaluated the application and determined that the action is exempt from CEQA pursuant to Section 15301 (Existing Facilities). This exemption applies to the operation, repair, or maintenance of existing structures or facilities involving negligible or no expansion of use beyond existing conditions at the time of the City’s determination.
ATTACHMENTS
1. Resolution of Intent
2. Air Products Request
2 ATTACHMENT 1
RESOLUTION NO. 2026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TORRANCE, CALIFORNIA, DECLARING ITS INTENTION
TO CONSIDER A RENEWAL OF A HYDROGEN PIPELINE
FRANCHISE ORDINANCE FROM AIR PRODUCTS AND
CHEMICALS, INC. AND SETTING THE DATE FOR A
PUBLIC HEARING AT WHICH PROTESTS OR
OBJECTIONS MAY BE RECEIVED
WHEREAS, Franchise Ordinance No. 3499 was granted to Air Products and Chemicals, Inc, a Delaware corporation, on May 15, 2001 and became effective on June 15, 2001 for a 25-year term; and
WHEREAS, Franchise Ordinance No. 3499 operate a 10-inch diameter hydrogen pipeline at 2,790 feet in length along 190th Street between Western Avenue and terminating 100 feet west of Van Ness Avenue; and
WHEREAS, the current Franchise Ordinance No. 3499 is set to expire on July 1, 2026; and WHEREAS, on March 25, 2026, the City received an application from Air Products and Chemicals, Inc. to renew the pipeline franchise.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF TORRANCE:
Section 1. The City of Torrance hereby expresses its intent to consider franchise application from Air Products and Chemicals, Inc. to operate and maintain existing 10-inch diameter hydrogen pipeline as described in Exhibit A, attached hereto and incorporated herein by reference.
Section 2. That pipeline franchise application is for a franchise period of twenty (20) years.
Section 3. Franchise fees under the franchise will be calculated by a cubic footage and product flow rate schedule agreed to by the City and Air Products and Chemicals, Inc. through adoption and acceptance of this franchise and paid annually to the City of Torrance pursuant to Section 6231.5(b) of the California Public Utilities Code.
Section 4. A public hearing to consider this application will be held on June 9, 2026 at 6:30 pm. in the City of Torrance, LeRoy J. Jackson Council Chamber, 3031 Torrance Boulevard.
All persons having any objection to the granting of the franchise may appear before the City Council and be heard at that time.
Section 5. A notice of the intention to consider the application for hydrogen pipeline franchise from Air Products and Chemicals, Inc. will be published in a newspaper of general circulation within 15 calendar days following the adoption of this Resolution. The notice will include: date, time, and place of the scheduled public hearing; a statement that the franchisee will pay franchise fees, and failure to pay such fees as prescribed will result in the forfeiture of the franchise.
Section 6. The City Clerk will certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk. 3 INTRODUCED, APPROVED, and ADOPTED this 19th day of May 2026.
George K. Chen
Mayor
APPROVED AS TO FORM: ATTEST:
PATRICK Q. SULLIVAN, City Attorney
By: ________________________________
Tatia Y. Strader Rebecca Poirier, MMC
Assistant City Attorney City Clerk
Attachment: Exhibit A - Description of Air Products and Chemicals, Inc. Hydrogen Pipeline 4 TORRANCE CITY COUNCIL RESOLUTION NO. 2026
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF TORRANCE )
I, Rebecca Poirier, City Clerk of the City of Torrance, California, do hereby certify that the foregoing resolution was duly introduced, approved, and adopted by the City Council of the City of Torrance at a regular meeting of said Council held on the 19th day of May 2026 by the following vote:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
Rebecca Poirier, MMC
Date: ________________________________________ City Clerk of the City of Torrance 5 EXHIBIT A
DESCRIPTION OF AIR PRODUCTS AND CHEMICALS, INC HYDROGEN PIPELINE 10-inch Hydrogen Pipeline
Commencing at City boundary line at the intersection of 190 th Street and Western Avenue, pipeline proceeds west along the north side of 190th Street terminating approximately 100 feet of Van Ness Avenue.
TOTAL FOOTAGE 2,790 feet
6 Air Products and Chemicals, Inc.
1940 Air Products Blvd.
Allentown, PA 18106-5500
March 25, 2026
City of Torrance
Office of City Manager
Attn: Carlos Huizar
3031 Torrance Boulevard
Torrance, CA 90503
Re: Extension Request of Ordinance No. 3499
Dear Mr. Huizar,
Thank you for taking the time to discuss the ordinance extension request process pertaining to Air Products and Chemicals, Inc. (“APCI”) Ordinance No. 3499 (“Ordinance”). I am providing this letter to officially request the City of Torrance (“City”) extend the existing APCI Ordinance prior to the scheduled expiration date of July 1, 2026.
APCI would like to request an extension of the Ordinance for an additional ten (10) year period with a renewal option for an additional ten (10) year period. APCI would like to propose annual franchise fee payments be based on the following:
- Product Flow Fee – Total annual volume dived by 365 (days) divided by 1,000,000 multiplied by $450
- Base Franchise Fee – Annual rate of one dollar and sixty-eight ($1.68) cents per cubic foot - Annual Adjustments – Calculated utilizing July 1991 CPI (All Urban Consumer) as Base Index and the applicable yearly CPI (All Urban Consumer) for each annual payment period.
At this time, APCI does not have plans for upcoming immediate work to extend the existing pipeline within the City. However, APCI would like to extend the existing Ordinance to ensure APCI remains in compliance with City regulations and requirements and for any future APCI work that would be governed by the required Ordinance.
Sincerely,
_________________________
Name: Jeffrie E. Welby
Title: Senior Principal Specialist – Corporate Right-of-Way
Enclosure: Ordinance No. 3499
7 ATTACHMENT 2